Machinery Finance

Sierra Finance is a Melbourne machinery finance broker arranging equipment and plant loans for businesses across Australia.

We work with 50+ lenders to fund everything from excavators and dozers through to CNC machines, manufacturing equipment and medical devices, from $10,000 to over $1 million.

Fast approvals on straightforward deals within 24 to 72 hours. The right deal on machinery finance starts with understanding the asset, not just the borrower. That's what a specialist broker does differently.

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Our Lenders

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What Machinery Finance We Offer

We arrange finance across every major category of machinery and equipment used by Australian businesses. Several asset types have their own dedicated pages with detailed information on lender appetite, age limits, and deal structures specific to that asset class.

Excavators - From 1.7 tonne mini excavators through to 50 tonne plus machines, excavators are one of the most commonly financed assets in Australian construction. Strong lender appetite across all major brands. Read more about Excavator Finance 

Bulldozers and Dozers - Higher value assets where lender selection matters more than most. Some lenders cap dozer finance at $500K while others will fund well over $2 million. Getting the right placement from the start saves time and money. Read more about bulldozer finance

Agricultural and Farm Machinery - Tractors, headers, harvesters, sprayers, balers, seeders and irrigation equipment. Farm finance is a genuinely different lending conversation because seasonal income, weather risk, and harvest cycles all need lenders who understand primary producers. Read more about agricultural machinery finance

CNC Machines and Manufacturing Equipment -  Lathes, milling machines, laser cutters, plasma cutters, press brakes, injection moulding machines. Manufacturing equipment often needs specialist lenders who understand the asset class and its resale market. A well maintained CNC machine holds its value very differently to a vehicle.

Medical and Dental Equipment - X ray machines, dental chairs, surgical equipment, diagnostic devices. Specialist healthcare lenders often offer better terms than mainstream banks for these assets.

Hospitality and Commercial Kitchen Equipment - Commercial ovens, cool rooms, fitout equipment. Often bundled as part of a business setup or expansion.

IT Infrastructure and Technology -  Servers, network equipment, point of sale systems, security infrastructure. Shorter finance terms typically suit tech equipment given the pace of obsolescence.

Solar and Energy Systems - Commercial solar installations, battery storage, energy management systems. Growing category with specific lender programs.

General Plant and Equipment - Forklifts, compressors, generators, welding equipment, scaffolding, access equipment. Strong lender appetite for standard plant items.

Don't see your specific asset type listed? Call us. If it's used to generate income for a business, there's almost certainly a lender on our panel who'll fund it.

How Machinery Finance Works

The first question on any machinery deal isn't "what rate can you get?" It's "what's the asset, and which lender actually wants to fund it?"

Every deal starts with the same intake: asset type, make and model, year, condition, whether it's a dealer or private sale, purchase price, deposit, any trade-in, and the net amount financed. Those details determine which lenders will say yes, which will say no, and which will offer the best terms. A new CAT excavator from a dealer gets a completely different response from a 2008 specialist manufacturing rig at a private sale. The broker who treats them the same will cost you money or time.

Most machinery in Australia is financed under one of these structures:

Chattel Mortgage is the most common structure for ABN holders buying machinery. You own the asset from settlement and the lender takes security over it as collateral. You can claim GST upfront on the purchase price, claim depreciation, and deduct the interest. Best suited to businesses registered for GST who use the asset primarily for business purposes. Terms typically run 1 to 7 years with optional balloon payments to reduce monthly repayments.

Finance Lease means the lender owns the asset and leases it to you over a fixed term. Lease payments are fully tax-deductible as an operating expense. At end of term you can pay a residual to take ownership, return the asset, or refinance. Suits businesses who want predictable monthly costs and prefer not to carry the asset on their balance sheet.

Commercial Hire Purchase (CHP) means you hire the asset with the option to purchase at end of term. Less common in modern machinery finance but still used where GST timing or specific accounting treatment matters.

Rental / Operating Lease can work well for machinery you only need for a specific project or contract, or where you want to upgrade regularly without dealing with disposal. Some operators prefer rental structures for tax simplicity, particularly on lower value equipment.

Your accountant should advise which structure suits your tax position. Our job is to find the best rate and terms within that structure from our panel of 50+ lenders.

machinery finance australia

Who Machinery Finance Is For

Machinery finance suits any business that needs productive assets to operate. The industries we work with most include construction and civil contractors, transport and logistics operators, manufacturers, farmers and primary producers, medical and dental practices, and hospitality businesses.

Established ABNs with two or more years of trading history and clean credit will qualify with most lenders on our panel, often with no deposit required. Newer businesses with less than two years can still get approved, though they'll typically need a deposit of 10 to 20 percent, a director's guarantee, or a coborrower. We also arrange low doc finance for businesses that can't provide full financials. BAS statements, bank statements, or an accountant's letter can often substitute for formal tax returns.

Credit issues don't automatically mean a decline. Several lenders on our panel specialise in non standard credit profiles. The key is matching the deal to the right lender rather than submitting everywhere and hoping.

Why Use a Broker for Machinery Finance

The most common mistake businesses make with machinery finance is going to the wrong lender for the asset type or age. Your bank might offer a competitive rate on a new CAT excavator from a dealer, but that same bank might decline a 12 year old lathe from a private sale. Or they'll approve it, but at a rate that reflects their discomfort with the asset rather than its actual risk.

That's where a broker earns their keep.

With access to 50+ lenders including major banks, second tier lenders, specialist asset finance funders, and non bank lenders, we match the deal to the lender who actually has appetite for that specific asset, age, value, and borrower profile. The difference isn't marginal. The right lender for a specific machinery deal can be significantly cheaper than the wrong one, and that compounds over a 5 year term on a high value asset.

For higher value machinery, say $500,000 and above, the placement becomes even more critical. Not every lender has the appetite or the delegated authority to approve large machinery deals quickly. Some need head office sign off that adds weeks to the timeline. Others have specialist divisions that handle large ticket assets routinely and can approve within days. Knowing which lender fits which deal is the difference between settling next week and waiting a month.

We also handle the asset types that mainstream brokers won't touch or don't understand. Specialist manufacturing equipment with limited resale markets, imported machinery, custom built rigs, older assets that still have decades of useful life. These deals require a broker who knows which lenders will look at them and how to present the deal so it gets approved.

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Talk to a broker who understands Machinery. No obligation, fast response.

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How Machinery Finance Works

Step 1. Tell us about the deal. Call, email, or apply through the website. We need the asset details: type, make, model, year, condition, whether it's dealer or private, purchase price, any deposit or trade in, and the net amount you need financed. The more specific you are upfront, the faster we move.

Step 2. We find the right lender. Based on the asset, your business profile, and the structure that suits your situation, we identify the best fit lender from our panel. We present the deal properly with a full credit narrative, not just submit an application and hope.

Step 3. Approval and settlement. Most straightforward machinery deals come back approved within 24 to 48 hours. Complex deals involving higher value, older assets, or non standard borrowers typically take 3 to 5 business days. Settlement follows within 1 to 5 business days depending on the lender and whether it's a dealer or private sale.

We keep you updated throughout. No chasing required.

Frequently Asked Questions

How much deposit do I need for machinery finance?
Established businesses with two or more years trading and clean credit often don't need any deposit at all. Newer businesses or those with credit issues typically need 10 to 20 percent. A deposit can also help secure better rates even when it's not strictly required.
Can I finance used or second hand machinery?
Yes. We finance used machinery across all categories. Age limits vary by lender and asset type. Some lenders will finance machinery up to 20 years old at end of term if the asset has a strong resale market, while others cut off at 10 or 12 years. We match the deal to a lender whose policy fits the asset's age and condition.
What's the difference between machinery finance and equipment finance?
In practice, the terms are used interchangeably. "Machinery" typically refers to heavier, higher value production assets like excavators, CNC machines, and manufacturing plant. "Equipment" tends to cover a broader range including smaller or more specialised items like medical devices, hospitality fitouts, and IT infrastructure. The finance structures and process are essentially the same.
Can I finance imported machinery from overseas?
Yes, though additional documentation is usually required. You'll need the purchase invoice from the overseas supplier, shipping and customs documentation, and evidence the asset has cleared quarantine and biosecurity where relevant. Some lenders are more comfortable with imports than others, which is another reason lender selection matters.
What finance term should I choose for machinery?
Most machinery deals run 3 to 5 years, though terms from 1 to 7 years are available. The right term depends on the asset's useful life, your cashflow, and whether you plan to keep or upgrade. Balloon payments at end of term are an option to reduce monthly repayments if cashflow is the priority.
Can I get machinery finance with a new ABN?
Yes, but it's more complex than financing for an established business. You'll typically need a deposit, a strong personal financial position, and potentially a guarantor. We work with several lenders who have specific start up programs for new ABNs provided the overall deal stacks up.
How is machinery valued for finance purposes?
Unlike vehicles, there's no universal Redbook for most machinery. Lenders rely on a combination of dealer pricing, auction results, independent valuations, and their own experience with the asset class. This is one of the areas where lender selection matters most. A lender familiar with your type of machinery will value it more accurately, and often more favourably, than one who doesn't regularly see that asset.
Can I finance machinery from a private sale?
Yes. We finance private sale machinery regularly. The process is slightly different from a dealer purchase because there's no dealer invoice, so the lender may require an independent valuation or inspection depending on the asset type and value. Settlement on private sales can also take a little longer because funds go directly to the seller rather than through a dealer's finance process. We handle private sale deals across all machinery types.
What documents do I need to apply for machinery finance?
For most applications you'll need your ABN and business details, a quote or invoice for the machinery, your driver's licence, and recent financial information. Established businesses typically provide their last two years of tax returns and ATO notices of assessment. For low doc applications, recent BAS statements or 6 months of business bank statements can be used instead. We'll tell you exactly what's needed for your specific deal upfront so there's no back and forth.
Is machinery finance tax deductible?
The tax treatment depends on the finance structure. With a chattel mortgage, you can claim depreciation on the asset and deduct the interest component of your repayments. You can also claim the GST on the purchase price upfront. With a finance lease, the full lease payment is typically deductible as a business expense. With rental or operating lease structures, repayments are fully deductible. Your accountant should confirm which structure gives you the best tax outcome for your situation.
Can I finance multiple machines in one application?
Yes. We regularly arrange finance for multiple assets in a single deal, whether that's two excavators for a new project or an entire workshop worth of manufacturing equipment. Some lenders prefer to bundle multiple assets into one facility, while others prefer separate contracts per asset. The right approach depends on the total value, whether the assets are from the same seller, and how you want to manage the repayments. We'll advise on the best structure.
Can I refinance machinery I already own?
Yes. If you own machinery outright or have significant equity in a financed asset, you can refinance to release cash back into the business. This is commonly used to fund working capital, a deposit on additional equipment, or to consolidate other business debts. The lender will assess the current market value of the machinery and your business financials to determine how much they'll lend against it.
What happens at the end of my machinery finance term?
That depends on the structure. With a chattel mortgage, you own the asset outright once the final payment is made (including any balloon or residual). With a finance lease, you'll have the option to pay the residual value and take ownership, return the asset, or refinance the residual into a new term. With rental or operating lease, you typically return the asset or negotiate a purchase price. If you've set a balloon payment, make sure you plan ahead for it because it will be due as a lump sum.
Do I need insurance on financed machinery?
Yes. Every lender requires comprehensive insurance on the asset for the duration of the finance term, with the lender noted as an interested party on the policy. You'll need to have insurance in place before settlement. If you don't already have a policy, your existing business insurance broker can usually add the asset quickly. Some lenders can also arrange insurance as part of the finance package, though shopping around for your own policy often gets a better price.
Can I include attachments and accessories in my machinery finance?
Yes. Buckets, rippers, GPS systems, safety equipment, hydraulic hammers, and other attachments can usually be bundled into the finance along with the base machine. This is common on excavator and dozer deals where the attachments can add tens of thousands to the total cost. Most lenders are comfortable financing attachments as part of the package provided they're itemised on the invoice. In some cases, aftermarket accessories purchased separately can also be included.

What Our Clients Say About Us

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Talk to a broker who understands your asset type and knows which lenders have appetite for it. No obligation, fast response.


Client Testimonials

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